ABSTRACT. Fernald and Neiman assess implications of heterogeneous user costs of capital in the newly industrialized economies (NIEs) and, in the case of Singapore, large but declining pure economic profits. Aysan contends that countries with high growth volatility are characterized with lack of well-developed financial markets and high degree of capital market imperfections. Agarwal notes that there might exist some correlationship between the financial sector and capital market development, and the growth of real GDP.